The banking industry veteran who helped steer Northern Rock back towards private sector ownership after its government rescue is handing over the reins at Monzo, the neobank which now ranks among Britain’s most valuable lenders.
Sky News has learnt that Gary Hoffman, who also spent 25 years at Barclays, is to step down as chairman of Monzo next month after nearly eight years in the role.
He will be replaced on an interim basis by Karen Peacock, one of the company’s non-executive directors, while it hunts for a long-term successor.
Ms Peacock’s appointment is understood to be subject to regulatory approval.
One source said the governance changes were expected to be formally announced as soon as this week.
The post is expected to be Mr Hoffman’s final substantive position in the banking industry, with Monzo having grown tenfold by customer numbers during his stint at the helm of the digital lender.
Monzo, which was founded in 2015, now boasts 16 million customers, placing it narrowly behind Britain’s big five high street banks.
It also employs about 5,000 people.
While it is significantly smaller than rival Revolut in valuation terms, Monzo ranks among the biggest fintech names ever launched in Britain.
It has amassed a huge customer base by developing a track record of product innovation, launching features such as its Gambling Block and Saving Challenge.
On Monday, it topped the UK competition watchdog’s rankings for service quality across personal and business current accounts in the UK.
Monzo’s rapid growth has not been entirely without challenges, most notably being fined £21m by the Financial Conduct Authority in July 2025 for failings in financial crime controls.
Nevertheless, the company’s relentless expansion has fuelled expectations of a bumper stock market flotation in London or New York.
Its investors, which include leading venture capital firms such as Google’s Capital G, Accel and Iconiq, now believe the company is worth in excess of £10bn as it continues to prepare for a public listing.
To strengthen its profile, Monzo has begun attaching its brand to prominent sports sponsorships including English cricket’s Hundred tournament, which concluded at the weekend.
Mr Hoffman has reshaped Monzo’s leadership team, recruiting Diana Layfield, a former Google and Standard Chartered executive, last year as its chief executive.
She replaced TS Anil, the long-serving boss whose ousting sparked a fracas between Mr Hoffman and some of the company’s leading shareholders.
People close to the situation said the timing of Mr Hoffman’s departure had been entirely his decision, and comes after he underwent lengthy treatment for prostate cancer.
Earlier this year, Mr Hoffman appointed Rupert Keeley, a former PayPal executive, as Monzo’s UK chair, part of a board separation aimed at positioning the company to capitalise on further growth in its home UK market and in Europe.
Mr Keeley is said to be joining Monzo’s group board as a non-executive director.
In a statement provided in response to an enquiry from Sky News, Mr Hoffman said: “While it was tempting to stay for my full nine-year term…this feels like the natural time to depart as Monzo pursues its next phase of growth.
“On a personal note, I am now successfully through several years of difficult prostate cancer treatment and I want to enjoy my good fortune in recovering by focusing on the people and priorities that inevitably take a back seat in a demanding role: my family and my passion for sport.”
He added: “Monzo is a fantastic brand and a great business, serving 16 million customers and continuing to grow both in the UK and Europe.
“Having been chair for nearly 8 years, I will leave with immense pride knowing my colleagues have created one of the UK’s leading banks that brings together the best of technology and banking, living up to the original founders’ dream of making money work for everyone.”
Mr Hoffman, who had a stint as chairman of the Premier League, also chairs Northamptonshire County Cricket Club.
His long career at Barclays included running Barclaycard as its chief executive, before he was parachuted in to run Northern Rock in 2008, months after it had been nationalised by the Labour government.
He spent just over two years there before joining NBNK Investments, a vehicle set up to acquire branch networks from Britain’s bailed out banks.
A deal for NBNK ultimately failed to materialise, and Mr Hoffman went on to run the insurance company Hastings before it was sold to the Finnish group Sampo.
He also held the chairmanship of Coventry Building Society for several years.
Monzo declined to comment further ahead of an official announcement.
